LCNB Corp. Reports Record Financial Results For The Three and Six Months Ended June 30, 2021

Rhea-AI Summary

LCNB Corp. (NASDAQ: LCNB) reported record second-quarter earnings of $5.29 million for Q2 2021, up from $5.06 million last year, reflecting a strong asset quality and growth in managed assets. The company's earnings per share increased to $0.41 from $0.39. Non-interest income rose 30% to $4.31 million, driven by increased fiduciary income and deposit service charges. However, non-interest expenses increased by $1.09 million due to higher salaries and operational costs. LCNB's asset quality remains strong, with nonperforming assets at 0.18%, down from 0.23% a year ago.

Positive

• Record net income of $5.29 million in Q2 2021, up from $5.06 million in Q2 2020.
• Earnings per share increased to $0.41, compared to $0.39 in the prior year.
• Non-interest income rose by 30% to $4.31 million, driven by fiduciary income growth of 44.5%.
• Total assets managed and average net loans increased year-over-year.
• Only one COVID-19 deferral remaining, a 97.3% decline from the previous year.

Negative

• Non-interest expenses increased by $1.09 million due to higher salaries and operational costs.
• Net charge-offs in Q2 2021 increased to $12,000 from $8,000 year-over-year.

LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three and six months ended June 30, 2021.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “LCNB achieved record second quarter earnings, driven by continued growth in total assets managed and strong asset quality. Growing assets, controlling risk, and diversifying revenue has helped LCNB successfully navigate the current low interest rate environment. Fee income generated from the Paycheck Protection Program (“PPP”) also contributed $402,000 to our record second quarter earnings as we processed $10.4 million of loan forgiveness under the program during the quarter. PPP loans continue to wind down and our loan portfolio included $23.8 million of PPP loans at June 30, 2021. In addition, we continue to benefit from robust fiduciary income associated with our rapidly growing wealth management business and, for the second quarter 2021, fiduciary income increased 44.5% over the prior year period to a quarterly record of $1.7 million."

Mr. Meilstrup continued, “Average net loans are up both sequentially and year-over-year, despite the $46 million of PPP loans forgiven over the past 12 months, which is a testament to our local presence and the value we provide customers within our compelling Ohio markets. In addition, while the competition for loans is high, we remain disciplined with our approach to risk and pricing of loans. As a result, our asset quality is robust as total non-performing loans are in line with pre-pandemic levels and net charge-offs continue to be limited. At June 30, 2021, we only had one $10.4 million relationship still in a COVID-19 deferral status, which is a 97.3% decline from the balance of COVID-19 deferrals at June 30, 2020.

¹ Total Assets Managed includes LCNB Corp. Consolidated Assets, LCNB Wealth Management Assets (Trust and Investments and Brokerage accounts), Loans Serviced for Others, and Cash Management Services.

“We continue to focus on strategies that support our growth opportunities, increase operating efficiencies, improve our customer engagement, and enhance our digital resources. We continue to develop and retain proven bankers and financial professionals throughout our organization. Additionally, we continue to attract new talent and we recently enhanced our commercial lending presence to pursue additional loan opportunities within Northern Kentucky. We also recently rebranded our investment and trust services to LCNB Wealth, which is an important component of our enhanced go to market and cross-selling strategies. Overall, I am extremely pleased with the progress we are making and excited by the direction we are headed,” concluded Mr. Meilstrup.

Net income for the 2021 second quarter was $5,290,000, compared to $5,057,000 for the same period last year. Earnings per basic and diluted share for the 2021 second quarter were $0.41, compared to $0.39 for the same period last year. Net income for the six-month period ended June 30, 2021, was $10,530,000, compared to $10,083,000 for the same period last year. Earnings per basic and diluted share for the six-month period ended June 30, 2021, were $0.82, compared to $0.78 for the same period last year.

Net interest income for the three months ended June 30, 2021, was $14,369,000, compared to $13,998,000 for the comparable period in 2020. Net interest income for the six-month period ended June 30, 2021, increased $565,000 to $28,741,000, as compared to $28,176,000 in the same period last year. Favorably contributing to the variances for both the three- and six- month periods were fees recognized from PPP loans and market driven decreases in the average rates paid on deposits, aided by a shift from higher cost certificates of deposit to lower cost demand and savings products.

Non-interest income for the three months ended June 30, 2021, increased $995,000 or by 30.0% to $4,314,000, compared to $3,319,000 for the same period last year. For the six months ended June 30, 2021, non-interest income increased $621,000 or by 8.7% to $7,779,000, compared to $7,158,000 for the same period last year. The primary drivers of the second quarter and first half year-over-year increases in non-interest income were increased fiduciary income, deposit service charges, and a one-time refund for the Company’s Ohio Financial Institution taxes, which was included in other operating income.

Non-interest expense for the three months ended June 30, 2021, was $1,092,000 greater than the comparable period in 2020 primarily due to increases in salaries and employee benefits, equipment, marketing, FDIC insurance, contracted services, and other non-interest expenses. For the first half ended June 30, 2021, non-interest expense increased $1,512,000 from the comparable period in 2020.

Asset Quality

For the 2021 second quarter, LCNB recorded a $15,000 credit for loan losses, compared to a provision of $16,000 for the 2020 second quarter. For the six months ended June 30, 2021, LCNB recognized a credit for loan losses of $67,000, compared to a provision of $1,189,000 for the six months ended June 30, 2020. The $1,256,000 year-over-year improvement in the provision for loan losses was partially due to strong asset quality and last year’s proactive build in the Company’s allowance for loan losses associated with the potential economic impacts caused by the COVID-19 pandemic.

Net charge-offs for the 2021 second quarter were $12,000, compared to $8,000 for the same period last year. For the 2021 six-month period, net charge-offs were $9,000, compared to $218,000 or 0.03% of average loans for the 2020 six-month period.

Non-accrual loans and loans past due 90 days or more and still accruing interest decreased $576,000, from $3,914,000 or 0.29% of total loans at June 30, 2020, to $3,338,000 or 0.25% of total loans at June 30, 2021. Nonperforming assets to total assets was 0.18% at June 30, 2021, compared to 0.23% at June 30, 2020.

About LCNB Corp.

LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Through its subsidiary, LCNB National Bank (the “Bank”), it serves customers and communities in Southwest and South-Central Ohio. A financial institution with a long tradition for building strong relationships with customers and communities, the Bank offers convenient banking locations in Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including checking, savings, digital banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more about LCNB Corp. at www.lcnb.com.

Forward-Looking Statements

Certain statements made in this news release regarding LCNB’s financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions. Please refer to LCNB’s Annual Report on Form 10-K for the year ended December 31, 2020, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of LCNB’s business and operations. Additionally, LCNB’s financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:

1. the success, impact, and timing of the implementation of LCNB’s business strategies;
2. the significant risks and uncertainties for LCNB's business, results of operations and financial condition, as well as its regulatory capital and liquidity ratios and other regulatory requirements, caused by the COVID-19 pandemic, which will depend on several factors, including the scope and duration of the pandemic, its influence on financial markets, the effectiveness of LCNB's work from home arrangements and staffing levels in operational facilities, the impact of market participants on which LCNB relies, and actions taken by governmental authorities and other third parties in response to the pandemic;
3. the disruption of global, national, state, and local economies associated with the COVID-19 pandemic, which could affect LCNB's liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses;
4. LCNB’s ability to integrate future acquisitions may be unsuccessful, or may be more difficult, time-consuming, or costly than expected;
5. LCNB may incur increased loan charge-offs in the future;
6. LCNB may face competitive loss of customers;
7. changes in the interest rate environment may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions;
8. changes in general economic conditions and increased competition could adversely affect LCNB’s operating results;
9. changes in regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results;
10. LCNB may experience difficulties growing loan and deposit balances;
11. United States trade relations with foreign countries could negatively impact the financial condition of LCNB's customers, which could adversely affect LCNB 's operating results and financial condition;
12. deterioration in the financial condition of the U.S. banking system may impact the valuations of investments LCNB has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments;
13. difficulties with technology or data security breaches, including cyberattacks, that could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others;
14. adverse weather events and natural disasters and global and/or national epidemics; and
15. government intervention in the U.S. financial system, including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, and the Tax Cuts and Jobs Act.

Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist shareholders and potential investors in understanding current and anticipated financial operations of LCNB and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.

LCNB Corp. and Subsidiaries Financial Highlights (Dollars in thousands, except per share amounts) (Unaudited)
	Three Months Ended																	Six Months Ended
	6/30/2021				3/31/2021				12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Condensed Income Statement
Interest income	$	15,429			$	15,535			15,945			15,322			15,957			30,964			32,513
Interest expense	1,060				1,163				1,432			1,793			1,959			2,223			4,337
Net interest income	14,369				14,372				14,513			13,529			13,998			28,741			28,176
Provision (credit) for loan losses	(15		)		(52		)		(151	)		976			16			(67	)		1,189
Net interest income after provision (credit)	14,384				14,424				14,664			12,553			13,982			28,808			26,987
Non-interest income	4,314				3,465				4,305			4,278			3,319			7,779			7,158
Non-interest expense	12,208				11,492				11,944			11,653			11,116			23,700			22,188
Income before income taxes	6,490				6,397				7,025			5,178			6,185			12,887			11,957
Provision for income taxes	1,200				1,157				1,283			928			1,128			2,357			1,874
Net income	$	5,290			$	5,240			5,742			4,250			5,057			10,530			10,083
Amort/Accret income on acquired loans	$	216			$	249			186			181			294			465			961
Amort/Accret expenses on acquired interest-bearing liabilities	$	—			$	—			1			—			2			—			4
Tax-equivalent net interest income	$	14,427			$	14,432			14,577			13,594			14,066			28,858			28,319
Per Share Data
Dividends per share	$	0.19			$	0.19			0.19			0.18			0.18			0.38			0.36
Basic earnings per common share	$	0.41			$	0.41			0.44			0.33			0.39			0.82			0.78
Diluted earnings per common share	$	0.41			$	0.41			0.44			0.33			0.39			0.82			0.78
Book value per share	$	18.99			$	18.66			18.73			18.46			18.27			18.99			18.27
Tangible book value per share	$	14.15			$	13.87			13.93			13.66			13.47			14.15			13.47
Weighted average common shares outstanding:
Basic	12,743,726				12,794,824				12,852,614			12,937,865			12,940,975			12,769,131			12,933,528
Diluted	12,743,726				12,794,852				12,852,657			12,937,901			12,941,001			12,769,146			12,934,158
Shares outstanding at period end	12,634,845				12,820,108				12,858,325			12,926,686			12,975,879			12,634,845			12,975,879
Selected Financial Ratios
Return on average assets	1.15		%		1.20		%		1.31	%		0.97	%		1.19	%		1.17	%		1.21	%
Return on average equity	8.78		%		8.80		%		9.52	%		7.08	%		8.63	%		8.79	%		8.69	%
Return on average tangible equity	11.76		%		11.81		%		12.83	%		9.56	%		11.74	%		11.79	%		11.92	%
Dividend payout ratio	46.34		%		46.34		%		43.18	%		54.55	%		46.15	%		46.34	%		46.15	%
Net interest margin (tax equivalent)	3.51		%		3.68		%		3.71	%		3.47	%		3.70	%		3.57	%		3.81	%
Efficiency ratio (tax equivalent)	65.14		%		64.21		%		63.26	%		65.20	%		63.94	%		64.69	%		62.54	%
Selected Balance Sheet Items
Cash and cash equivalents	$	22,909			$	41,144			31,730			24,485			42,736
Debt and equity securities	349,199				276,774				248,624			199,044			194,883
Loans:
Commercial and industrial	$	97,240			$	107,630			100,254			124,628			125,492
Commercial, secured by real estate	836,085				855,894				843,230			843,943			833,286
Residential real estate	341,447				328,265				309,692			327,689			334,349
Consumer	35,257				35,799				36,917			36,504			32,859
Agricultural	8,765				8,698				10,100			8,920			11,071
Other, including deposit overdrafts	369				346				363			403			283
Deferred net origination fees	(1,398		)		(1,531		)		(1,135	)		(1,927	)		(1,902	)
Loans, gross	1,317,765				1,335,101				1,299,421			1,340,160			1,335,438
Less allowance for loan losses	5,652				5,679				5,728			5,974			5,016
Loans, net	$	1,312,113			$	1,329,422			1,293,693			1,334,186			1,330,422
Total earning assets	$	1,671,462			$	1,634,818			1,562,392			1,547,538			1,554,537
Total assets	1,856,670				1,818,321				1,745,884			1,725,615			1,735,332

	Three Months Ended																	Six Months Ended
	6/30/2021				3/31/2021				12/31/2020			9/30/2020			6/30/2020			6/30/2021			6/30/2020
Selected Balance Sheet Items, continued
Total deposits	1,577,345				1,537,116				1,455,423			1,430,394			1,438,921
Short-term borrowings	—				—				—			—			—
Long-term debt	15,000				17,000				22,000			31,999			33,998
Total shareholders’ equity	239,952				239,246				240,825			238,585			237,047
Equity to assets ratio	12.92		%		13.16		%		13.79	%		13.83	%		13.66	%
Loans to deposits ratio	83.54		%		86.86		%		89.28	%		93.69	%		92.81	%
Tangible common equity (TCE)	$	178,771			$	177,805			179,127			176,624			174,823
Tangible common assets (TCA)	1,795,489				1,756,880				1,684,186			1,663,654			1,673,108
TCE/TCA	9.96		%		10.12		%		10.64	%		10.62	%		10.45	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	45,414			$	37,269			49,273			42,661			46,292			41,385			35,712
Debt and equity securities	312,596				260,147				218,816			197,788			182,371			286,517			193,642
Loans	$	1,328,760			$	1,313,803			1,313,892			1,339,608			1,318,753			1,321,323			1,285,654
Less allowance for loan losses	5,678				5,715				5,920			5,250			4,998			5,696			4,468
Net loans	$	1,323,082			$	1,308,088			1,307,972			1,334,358			1,313,755			1,315,627			1,281,186
Total earning assets	$	1,666,126			$	1,589,582			1,561,392			1,558,886			1,528,610			1,628,066			1,495,779
Total assets	1,852,035				1,775,154				1,742,947			1,741,998			1,704,303			1,813,888			1,671,394
Total deposits	1,570,070				1,488,156				1,447,217			1,445,573			1,412,082			1,529,339			1,379,426
Short-term borrowings	716				342				—			—			82			530			749
Long-term debt	15,571				19,689				30,803			33,020			34,964			17,619			36,644
Total shareholders’ equity	241,651				241,517				239,881			238,990			235,587			241,585			233,322
Equity to assets ratio	13.05		%		13.61		%		13.76	%		13.72	%		13.82	%		13.32	%		13.96	%
Loans to deposits ratio	84.63		%		88.28		%		90.79	%		92.67	%		93.39	%		86.40	%		93.20	%
Asset Quality
Net charge-offs (recoveries)	$	12			$	(3	)		95			18			8			9			218
Other real estate owned	—				—				—			—			—			—			—
Non-accrual loans	3,338				3,365				3,718			4,110			3,876			3,338			3,876
Loans past due 90 days or more and still accruing	—				—				—			94			38			—			38
Total nonperforming loans	$	3,338			$	3,365			3,718			4,204			3,914			3,338			3,914
Net charge-offs to average loans	0.00		%		0.00		%		0.03	%		0.01	%		0.00	%		0.00	%		0.03	%
Allowance for loan losses to total loans	0.43		%		0.43		%		0.44	%		0.45	%		0.38	%		0.43	%		0.38	%
Nonperforming loans to total loans	0.25		%		0.25		%		0.29	%		0.31	%		0.29	%		0.25	%		0.29	%
Nonperforming assets to total assets	0.18		%		0.19		%		0.21	%		0.24	%		0.23	%		0.18	%		0.23	%
Assets Under Management
LCNB Corp. total assets	$	1,856,670			$	1,818,321			1,745,884			1,725,615			1,735,332
Trust and investments (fair value)	701,838				673,742				628,414			524,502			516,076
Mortgage loans serviced	126,924				127,290				137,188			120,546			100,189
Cash management	80,177				118,494				116,792			119,520			116,615
Brokerage accounts (fair value)	314,491				299,355				292,953			267,307			255,276
Total assets managed	$	3,080,100			$	3,037,202			2,921,231			2,757,490			2,723,488

LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands)
	June 30, 2021 (Unaudited)				December 31, 2020
ASSETS:
Cash and due from banks	$	18,411			17,383
Interest-bearing demand deposits	4,498				14,347
Total cash and cash equivalents	22,909				31,730
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,488				2,389
Equity securities without a readily determinable fair value, at cost	2,099				2,099
Debt securities, available-for-sale, at fair value	310,515				209,471
Debt securities, held-to-maturity, at cost	24,242				24,810
Federal Reserve Bank stock, at cost	4,652				4,652
Federal Home Loan Bank stock, at cost	5,203				5,203
Loans, net	1,312,113				1,293,693
Premises and equipment, net	35,356				35,376
Operating leases right of use asset	6,730				6,274
Goodwill	59,221				59,221
Core deposit and other intangibles	2,853				3,453
Bank owned life insurance	42,685				42,149
Interest receivable	8,395				8,337
Other assets	17,209				17,027
TOTAL ASSETS	$	1,856,670			1,745,884
LIABILITIES:
Deposits:
Noninterest-bearing	$	472,830			455,073
Interest-bearing	1,104,515				1,000,350
Total deposits	1,577,345				1,455,423
Long-term debt	15,000				22,000
Operating lease liabilities	6,846				6,371
Accrued interest and other liabilities	17,527				21,265
TOTAL LIABILITIES	1,616,718				1,505,059
COMMITMENTS AND CONTINGENT LIABILITIES	—				—
SHAREHOLDERS' EQUITY:
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding	—				—
Common shares –no par value, authorized 19,000,000 shares; issued 14,201,728 and 14,163,904 shares at June 30, 2021 and December 31, 2020, respectively; outstanding 12,634,845 and 12,858,325 shares at June 30, 2021 and December 31, 2020, respectively	142,791				142,443
Retained earnings	120,720				115,058
Treasury shares at cost, 1,566,883 and 1,305,579 shares at June 30, 2021 and December 31, 2020, respectively	(25,122		)		(20,719	)
Accumulated other comprehensive income, net of taxes	1,563				4,043
TOTAL SHAREHOLDERS' EQUITY	239,952				240,825
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,856,670			1,745,884

LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited)
	Three Months Ended June 30,							Six Months Ended June 30,
	2021				2020			2021			2020
INTEREST INCOME:
Interest and fees on loans	$	14,108			14,822			28,643			30,049
Dividends on equity securities with a readily determinable fair value	13				13			26			27
Dividends on equity securities without a readily determinable fair value	5				12			11			28
Interest on debt securities, taxable	905				667			1,623			1,617
Interest on debt securities, non-taxable	218				254			442			539
Other investments	180				189			219			253
TOTAL INTEREST INCOME	15,429				15,957			30,964			32,513
INTEREST EXPENSE:
Interest on deposits	945				1,732			1,973			3,849
Interest on short-term borrowings	1				—			2			7
Interest on long-term debt	114				227			248			481
TOTAL INTEREST EXPENSE	1,060				1,959			2,223			4,337
NET INTEREST INCOME	14,369				13,998			28,741			28,176
PROVISION (CREDIT) FOR LOAN LOSSES	(15		)		16			(6	)		1,189
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES	14,384				13,982			28,808			26,987
NON-INTEREST INCOME:
Fiduciary income	1,735				1,201			3,264			2,304
Service charges and fees on deposit accounts	1,519				1,237			2,885			2,532
Net gains on sales of debt securities, available-for-sale	—				—			—			221
Bank owned life insurance income	269				287			536			888
Gains from sales of loans	151				317			194			437
Other operating income	640				277			900			776
TOTAL NON-INTEREST INCOME	4,314				3,319			7,779			7,158
NON-INTEREST EXPENSE:
Salaries and employee benefits	7,111				6,648			13,544			13,416
Equipment expenses	443				289			811			576
Occupancy expense, net	729				723			1,523			1,405
State financial institutions tax	437				420			881			856
Marketing	357				258			625			435
Amortization of intangibles	260				260			517			520
FDIC insurance premiums, net	123				31			236			30
Contracted services	623				475			1,163			877
Other non-interest expense	2,125				2,012			4,400			4,073
TOTAL NON-INTEREST EXPENSE	12,208				11,116			23,700			22,188
INCOME BEFORE INCOME TAXES	6,490				6,185			12,887			11,957
PROVISION FOR INCOME TAXES	1,200				1,128			2,357			1,874
NET INCOME	$	5,290			5,057			10,530			10,083
Dividends declared per common share	$	0.19			0.18			0.38			0.36
Earnings per common share:
Basic	0.41				0.39			0.82			0.78
Diluted	0.41				0.39			0.82			0.78
Weighted average common shares outstanding:
Basic	12,743,726				12,940,975			12,769,131			12,933,528
Diluted	12,743,726				12,941,001			12,769,146			12,934,158

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005254/en/

FAQ

What were LCNB's earnings for Q2 2021?

LCNB reported net income of $5.29 million for Q2 2021.

How much did LCNB's earnings per share increase in Q2 2021?

Earnings per share increased to $0.41 in Q2 2021, up from $0.39 in Q2 2020.

What drove the increase in LCNB's non-interest income for Q2 2021?

The 30% increase in non-interest income was primarily driven by growth in fiduciary income and deposit service charges.

What is LCNB's approach to COVID-19 loan deferrals?

LCNB has only one $10.4 million COVID-19 deferral remaining, marking a 97.3% reduction from the previous year.

How has LCNB's asset quality changed as of June 30, 2021?

As of June 30, 2021, nonperforming assets to total assets were 0.18%, down from 0.23% a year ago.